West Valley Home Depot distribution center sold for $26M

A San Francisco-based company has scooped up a huge warehouse in southwest Phoenix occupied by Home Depot for $26.25 million, according to a statement Tuesday from Jones Lang LaSalle.

At 400,000 square feet, the transaction commanded a sales price of $65.62 per square foot — slightly higher than the Valleywide average of $59.33 for industrial space, according to the most recent data by LoopNet.

The sale also follows a disappointing third quarter for the industrial sector in which absorption slowed and vacancy rose. Particularly, the Southwest Valley submarket, in which the Home Depot warehouse is situated, posted the second-highest vacancy rate and highest negative absorption in the Valley during the third quarter. However, it also has had the most new industrial space constructed this year, according to JLL’s quarterly report.

The buyer of the Home Depot building — located near 75th Avenue and Buckeye Road — was UBS Realty Advisors LLC. It was sold by Sealy & Co. in Dallas.